REINSTEIN DISCOVERS.
♪ TED: CONSUMERS AND COMPANIES ARE CASHING IN ON CASHLESS TRANSACTIONS.
>> WE ARE SEEING THIS EXPLOSION IN DIGITAL PEER-TO-PEER PAYMENTS.
TED: ONE OF THE MORE POPULAR IS THEN MOWED.
LAST QUARTER, THE APP PROCESS MORE THAN $27 BILLION IN PAYMENTS.
>> I AM FASCINATED BY HOW TECHNOLOGY IS DISRUPTING BUSINESS AND SOCIETY.
TED: PROFESSOR, ENTREPRENEUR AND HOST OF THE DISRUPTIVE INNOVATI PODCAST, MIKE SAYS OTHER PEER-TO-PEER PAYMENT OPTIONS ARE GROWING.
>>ELL, WHICH IS SOMETHING OWNED BY A CONSORTIUM OF SEVEN BANKS, IS DOING HALF $1 TRILLION EVERY QUARTER IN PEER-TO-PEER PAYMENT.
THESE ARE FREE.
TED: THESE OPPORTUNITIES TO AVOID FEES AND INCREASE CONVENIENCE OR CAUSING CONSUMERS TO BREAK WITH BANKING TRADITIONS.
>> 2019 WAS THE FIRST TIME EVER MORE THAN HALF OF THE U.S.
POPULATION STARTED INTERACTING WITH THERE USING THEIR BLACK -- WITH THERE USING THEIR MOBILE APP.
WHAT WE ARE GOING TO SEE IN 2020 IS A SIGNIFICANT NUMBER OF THESE BIG COMPANIES PROVIDING A LEVEL OF ADDITIONAL FINANCIAL SERVICES, CREDIT CARDS, DEBIT CARDS, CHECKING ACCOUNTS.
TED: APPLE JUST LAUNCHED A NEW CREDIT CARD.
GLOBAL ACT -- GOOGLE AND AMAZON SAY THEY ARE OFFERING CHECKING ACCOUNTS.
>> THERE WILL BE LESS AND LESS TRADITIONAL BANKS DOING BUSINESS WITH US.
ANTHONY: CRYPTIC -- TED: CRYPTOCURRENCY IS DIGITAL ONLY CURRENCY WITH NO CENTRAL ISSUING AUTHORITY.
IT RELIES ON ADVANCED CODE TO PREVENT FRAUD.
IT IS NOT A NEW CONCEPT IN THE U.S., IT JUST HAS NOT COME COMMON PRACTICE YET.
>> BITCOIN WAS IN RESPONSE TO THE FINANCIAL CRISIS.
WHEN THE SUBPRIME CRISIS HAPPENED, THERE WAS A TREMENDOUS LOSS OF FAITH IN GOVERNMENTS AND CENTRAL BANKS.
BITCOIN WAS AN ATTEMPT TO PROVIDE CONTROL TO THE MASSES.
TED: HE SAYS THAT COIN’S AUNT -- HE SAYS BITCOIN’S ANONYMITY ATTRACTED TOO MUCH -- FACEBOOK SAID IT WAS GETTING INTO CRYPTO COIN WITH LIB LIBERAL.
CHINA APPEARS READY TO LAUNCH ITS VERSION.
>> CHINA WILL BE THE FIRST COUNTRY TO CREATE ITS OWN DIGITAL CURRENCY.
IT IS THE OPPOSITE OF BITCOIN WHERE EVERY TRANSACTION IS 100% TRACEABLE BACK TO THE INDIVIDUAL.
TED: FOR THOSE WHO FEEL OVERWHELMED AND UNDEREDUCATED WHEN IT COMES TO MONEY -- THE AVERAGE CUSTOMER PAYS BY OVER A QUARTER OF A PERCEPTION -- OVER A QUARTER OF A
PERCEPTION TED: APPS HELP PEOPLE BUILD CREDIT AND AFFIRM, WHICH PROVIDES INSTANT POINT-OF-SALE LOANS.
THERE IS ALSO A MORTGAGE SALE STARTUP.
IRAN THE LENDING BUSINESS FOR A BANK IN BOSTON.
I WAS RESPONSIBLE FOR $11 MILLION WORTH OF HOME LOANS.
DESPITE WORKING WITH SOME 40,000 CUSTOMERS, WHEN IT CAME -- WHEN IT CAME TIME FOR ME TO GET A MORTGAGE, I DID NOT GO TO MY OWN BANK.
TED: PATRICK FOUNDED ON UP IN 2016.
>> THERE ARE A LOT OF LENDERS TRYING TO DO WHAT IS BEST FOR THE CONSUMER.
WE SEARCH FOR THE LENDERS.
WE PUT THEM THROUGH A VETTING PROCESS.
TED: POTENTIAL HOMEBUYERS CAN BUILD A PROFILE AND GET PERSONALIZED OFFERS WITHOUT ENTERING A SOCIAL SECURITY NUMBER AND NO HARD CREDIT INQUIRIES.
>> THE CONSUMER FINANCE PROTECTION BUREAU TELLS US MORE THAN 70% OF PEOPLE NEVER EVEN SHOP WITH ONE LENDER.
TED: OWN UP HAS WORKED WITH CUSTOMERS WHO CAN NOW SAY THEY HAVE.
>> ARE -- OUR AVERAGE CUSTOMER SAVES OVER $20,000.
WE FELT LIKE WE COULD BUILD A TECHNOLOGY COMPANY THAT EMPOWERED CONSUMERS BY GIVING THEM CUSTOMIZED DATA AND PAIRING THEM WITH A HUMAN THAT GIVES THEM PERSONALIZED ADVICE.
THEY WOULD ACHIEVE BETTER FINANCIAL OUTCOMES.
THAT IS WHAT HAS HAPPENED.
ANTHONY: ANOTHER TREND TO KEEP AN EYE ON HIS ESG INVESTMENTS.
THAT STANDS FOR ENVIRONMENTAL, SOCIAL AND GOVERNANCE.
FINANCIAL SERVICES COMPANIES SAY INVESTORS ARE GROWING MORE CONSCIOUS.
WE MAY BE SEEING MORE ESG FUNDS IN FOUR OAK -